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Final Project

Nestlé
“Enhancing quality of life and contributing to a healthier future”

Nestlé is a Swiss multinational food and beverage company, founded in 1866. It is one of
the largest food and beverage companies in the world, with operations in 191 countries and over
2,000 brands, including well-known names such as Nescafé, KitKat, Gerber, and Perrier. The
company's product portfolio includes a wide range of products, including bottled water, coffee,
confectionery, dairy, frozen food, pet care, and more. Nestlé has a decentralized operational
structure, with regional headquarters and factories in different parts of the world, and a strong
emphasis on research and development, marketing, and distribution. With a commitment to
enhancing quality of life and contributing to a healthier future, Nestlé is dedicated to producing
and selling high-quality, nutritious products that meet the evolving needs of consumers.

Main Purpose
The main purpose of Nestlé is to enhance quality of life and contribute to a healthier
future. To achieve this, the company produces and sells food and beverage products that meet the
needs and expectations of consumers around the world, while also taking into account the impact
its operations have on the environment and society. Through its products, services, and
operations, Nestlé aims to make a positive difference in people's lives, while also generating
long-term value for its shareholders. This is reflected in the company's vision statement, which
states: "Nestlé is committed to enhancing quality of life and contributing to a healthier future."

Company’s ambitions
Nestlé has several ambitions that guide its business strategy and operations:

 To be a leading health and wellness company

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Nestlé aims to be at the forefront of innovation in the food and beverage industry,
offering products that meet consumers' evolving needs for health and wellness.

 To have a positive impact on society

Nestlé is committed to sustainable and responsible business practices, with a
focus on reducing its environmental footprint and supporting communities where
it operates.

 To drive growth through innovation

Nestlé invests heavily in research and development, aiming to introduce new and
innovative products that meet consumers' changing preferences.

 To create long-term value for shareholders

Nestlé seeks to grow its business and deliver attractive returns for its shareholders
through a combination of organic growth, strategic acquisitions, and operational
efficiency.

 To be a trusted and respected brand

Nestlé strives to maintain its reputation as a responsible and reliable producer of
high-quality food and beverage products, and as a good corporate citizen.

Mission Statement
Nestlé is the world's leading nutrition, health and wellness company. Our mission of
"Good Food, Good Life" is to provide consumers with the best tasting, most nutritious choices in
a wide range of food and beverage categories and eating occasions, from morning to night.

Vision Statement
Nestlé's vision statement is "Nestlé is committed to enhancing quality of life and
contributing to a healthier future." This vision reflects the company's focus on producing and
selling food and beverage products that promote health and wellness, while also taking into
account the impact its operations have on the environment and society. By providing access to
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high-quality, nutritious products and working to minimize its environmental footprint, Nestlé
aims to make a positive impact on the world and create long-term value for its stakeholders.

Nestle Major Operational

Nestle is a multinational food and beverage company that operates in various industries,
including bottled water, coffee, confectionery, dairy, frozen food, pet care, and more. It has a
decentralized operational structure, with regional headquarters and factories in different parts of
the world. Nestle's key operational strategies include product innovation, efficient supply chain
management, and sustainable sourcing of raw materials. The company has a strong emphasis on
research and development, and invests heavily in marketing and distribution to build its brand
and reach customers in markets around the world.

Board of Directors
Members of the Board of Directors Nestlé’s Board of Directors is highly structured to ensure a
high degree of diversity by age, gender, education/qualifications, professional background,
present activity, sector expertise, special skills (classification), nationality and geography. This is
reflected in Nestlé’s skills and diversity grid disclosed here.
NAME Education/Qualifications Professional background
Paul Bulcke Economics and Business Chairman, Nestlé S.A.
Administration
Ulf Mark Economics, Business Chairman, Nestlé S.A.
Schneider 1 Administration and Finance &
Accounting
Henri de HEC, Law and École Nationale Former Chairman and CEO, AXA French Ministry,
Castries d’Administration (ENA) Government
Renato Economics, Business Former CFO, ABB and Credit Suisse Former CEO,
Fassbind Administration and Finance & Diethelm Keller Group
Accounting
Pablo Isla Law Former Executive Chairman, Inditex Former State
Attorney Government Spain Banco Popular España
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Eva Cheng Business Administration and Former Amway China Chairperson and EVP,
History Amway Corporation
Patrick Medicine and Neuroscience President Emeritus, Swiss Federal Institute of
Aebischer Technology Lausanne (EPFL)
Kimberly A. Business Administration and Former CFO, Baker Hughes, Avon Products, Royal
Ross Finance & Accounting Ahold NV WeWork
Dick Boer Business Administration Former President and CEO, Ahold Delhaize NV
Dinesh Paliwal Engineering, Applied Sciences, Former Chairman and CEO, Harman International
Business Administration Former President, ABB Ltd.
Hanne Jimenez Business Administration Former Partner, McKinsey & Company Co-founder
de Mora and former Chairperson, a-connect group
Lindiwe M. Agriculture Sciences, Animal Director, Chairwoman and Policy Advisor for
Sibanda Physiology & Nutrition Agriculture and Sustainable Food Systems
Chris Leong Management Former SVP Nokia, WPP
Luca Maestri Economics and Business Former CFO Xerox, Nokia Siemens, General
Administration Motors

Nestle major competitor and industry analysis

Nestle's major competitors in the food and beverage industry include:

 Unilever

 Coca-Cola

 PepsiCo

 Kraft Heinz

 Danone

As for industry analysis, the food and beverage industry is highly competitive and characterized
by a large number of players, intense rivalry, and dynamic market conditions. The industry has
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been shifting towards healthier and more sustainable food options, leading to increased demand
for organic and plant-based products. In addition, e-commerce has been growing rapidly in the
industry, driving the need for strong online presence and distribution networks. Despite these
challenges, the industry is expected to continue growing due to increasing global population and
rising disposable incomes.

SWOT Matrix
SWOT analysis is a strategic tool used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats of a business. Here is a SWOT analysis for Nestle:

Strengths
 Renowned Brand
 Extensive Distribution System
 Broad Product Portfolio
 Large Workforce
 R&D Center
 Brand Equity
 World's Most Valuable Brand
 Strong brand recognition and reputation
 Global reach and distribution network
 Strong research and development capabilities

Weaknesses
 Water Controversy
 Social Criticism
 Legal & Consumer Issue
 Brand Structure
 Promotion
 Dependence on developed markets
 High debt levels
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Opportunities
 Expansion in emerging markets
 Increasing demand for healthy and sustainable products
 Partnership and acquisition opportunities
 Growing demand for convenience and packaged foods

Threats
 Intense competition in the food and beverage industry
 Fluctuations in raw material prices
 Stringent government regulations
 Negative impact of COVID-19 pandemic

Pest Analysis
A PEST (Political, Economic, Social, and Technological) analysis is a framework used to
assess the impact of external factors on a company. Here's how these factors could impact
Nestle:

 Political
Nestle operates in a number of countries with varying levels of political stability, which
can affect the company's ability to do business. In addition, changes in government
regulations, such as those related to food safety and labeling, can also impact the
company's operations.

 Economic
Nestle is sensitive to changes in the global economy, such as fluctuations in exchange
rates and commodity prices. The company is also impacted by consumer spending
patterns, which can be influenced by factors such as unemployment and inflation.

 Social
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Consumer preferences and trends play a significant role in Nestle's operations and future
prospects. For example, the growing demand for healthier and more sustainable food
options is affecting the company's product offerings and marketing strategies.

 Technological
Nestle is investing in innovation and technology to improve its operations, increase
efficiency, and develop new products. The rapid pace of technological change can also
present opportunities and challenges for the company.

Products of Nestle

Following are the products which we are using to make BCG Matrix:

 Nestle Pure Life Water

 Nestle Cerelac
 Nestle Nesvita

BCG Matrix
Division Revenue Percentage of Revenue Profit Percentage of Profit Previous year Revenue RMSP IG Rate %
Nestle Pure Life Water 50,435,890 40% 8,654,032 46% 52,151,280 17.75% -3%
Nestle Cerelac 27,985,672 22% 3,987,602 21% 29,190,845 9.85% -4%
Nestle Nesvita 46,193,223 37% 6,076,980 32% 40,872,573 16.25% 13%
124,614,785 100% 18,718,614 100% 122,214,698 - -
(This Matrix is according to the year 2022)

Conclusion, draw an argument whether in your

opinion the company has achieved competitive
advantages or not? (Why/why not)
Nestle, being one of the largest food and beverage companies in the world, has achieved
significant competitive advantages through a combination of factors such as strong brand
recognition, extensive global distribution network, innovative product portfolio, and economies
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of scale. The company's continuous investment in research and development, coupled with its
acquisition strategy, has enabled it to maintain its market leadership position and drive growth.

However, the company also faces significant challenges such as intense competition, changing
consumer preferences towards healthier and sustainable products, and increasing regulatory
pressure. Despite these challenges, Nestle's financial performance, reputation, and resilience
demonstrate its ability to adapt and maintain its competitive advantages.

In conclusion, based on these factors, I believe that nestle has achieved significant competitive
advantages, although the company must continue to evolve and innovate to maintain its market
leadership position and meet the changing demands of consumers.